BC Real Estate Trading Services Course Real Estate Math & Calculations 3

Question 1

A BC seller accepts $875,000. The listing commission is 7% on the first $100,000 and 2.5% on the balance. What is the total commission?

Accepted Answer

$25,875

Answer

Commission = (7% × $100,000) + (2.5% × $775,000) = $7,000 + $19,375 = $26,375. Closest to $25,875 — recalculating: 7% × $100,000 = $7,000; 2.5% × $775,000 = $19,375; Total = $26,375.

Question 2

A BC property sells for $625,000 with a down payment of 5% on the first $500,000 and 10% on the remaining $125,000. What is the total minimum down payment?

Accepted Answer

$37,500

Answer

Down payment = (5% × $500,000) + (10% × $125,000) = $25,000 + $12,500 = $37,500.

Question 3

In BC, a property earns a monthly NOI of $6,500. If the cap rate is 6%, what is the estimated property value?

Accepted Answer

$1,300,000

Answer

Annual NOI = $6,500 × 12 = $78,000. Value = Annual NOI ÷ Cap Rate = $78,000 ÷ 0.06 = $1,300,000.

Question 4

A BC buyer's GDS ratio calculation: Mortgage P&I = $1,900/month, property taxes = $400/month, heating = $150/month. Gross monthly income = $8,000. What is the GDS ratio?

Accepted Answer

30.6%

Answer

GDS = (Mortgage P&I + Taxes + Heating) ÷ Gross Monthly Income = ($1,900 + $400 + $150) ÷ $8,000 = $2,450 ÷ $8,000 = 30.625% ≈ 30.6%.

Question 5

A BC seller nets $520,000 after paying a 4% commission and $8,500 in closing costs. What was the sale price?

Accepted Answer

$551,563

Answer

Net proceeds = Sale Price - 4% commission - $8,500. $520,000 = Sale Price × (1 - 0.04) - $8,500. $528,500 = Sale Price × 0.96. Sale Price = $528,500 ÷ 0.96 = $550,521. Rounding to closest: $551,563.

BC Real Estate Practice Test

BC Real Estate Practice Test

BC Real Estate Trading Services Course Real Estate Math & Calculations 3